Nintendo shares fell 4.9% immediately after the company announced its new title, Kirby: World Beyond. The dilemma of developing its IP has come to the fore, with the market focused on how Nintendo can balance its dependence on existing IP with the creation of new IP.
Nintendo is seeking to balance the use of existing IP with the creation of new IP while pursuing long-term growth. The market has pointed to the game-console market entering a mature phase and the expansion of services targeting casual users, such as Roblox, increasing the importance of additional content alongside software sales as a source of revenue.
The all-new title Kirby: World Beyond, announced on 9 September, is expected to introduce the new approach of allowing players to move freely through a 3D field, but the share price fell 4.9% the following day, 10 September. Investors appear to be placing importance on the scale and immediacy of major titles.
The article reports that Nintendo is targeting long-term growth by creating new IP and reviving past IP, while closely watching how the current market evaluates these efforts. It also presents the view that, compared with the PlayStation model, PS has maintained steady growth by extending product life through add-on content.
Nintendo's effort to develop Kirby as a new 3D adventure game has created a gap between investor expectations and the market's response. Nintendo is also focusing on expanding its IP through films and theme parks, and its explanations to investors could affect future share-price trends.